SFC concludes consultation on position limit regime

Hong Kong SFC

The Securities and Futures Commission (SFC) today published conclusions to a consultation to expand the scope of the position limit regime.

After considering market feedback, the SFC has concluded that the proposals as set out in the consultation will be implemented. These include a 300% cap on the excess position limit that may be authorized by the SFC, a statutory position limit of 150,000 contracts for stock options as well as new excess position limits for index arbitrage activities, asset managers and market makers of exchange-traded funds.

In light of market responses, the minimum “assets under management” requirement applicable to asset managers will be lowered from $100 billion to $80 billion.

Subject to the legislative process, the SFC plans for the amended rules to come into effect on 1 June 2017.

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